David Deem
Broker Associate
714-997-3486
The inventory of active homes for sale over the past few weeks has fallen by three and is roughly flat, now at 1,939. This is the second lowest mid-February figure since tracking began in 2004, behind 2022. In January, 1,072 homes were on the market, 35% fewer than the pre-COVID-19 three-year average (2017-2019). This year, 277 more sellers are on the market compared to January 2023. Last year, 2,305 homes were on the market, a 19% increase of 366 more homes. The pre-COVID-19 three-year average (2017-2019) was 4,977, a 157% increase and more than double.
· Demand, or month-over-month pending sales, has increased by 107 over the past two weeks, up 8%, to a current total of 1,397, the lowest mid-February figure since tracking began. Last year there were 1,537 pending sales, 10% more than today. The pre-COVID three-year average (2017-2019) was 2,393, 71% more.
· With demand increasing and supply remaining constant, the expected market length, the number of days it would take to sell all properties in Orange County at the current buying pace, has decreased over the past few weeks from 45 to 42 days. Last year it was 45 days, similar to today. The three-year average pre-COVID (2017-2019) was 64 days, slower than today.
For homes under $750,000, the expected time on market decreased from 36 days to 33 days. This range represents 20% of active inventory and 25% of demand.
For homes priced between $750,000 and $1 million, the expected time on market remains at 25 days. This range represents 14% of active inventory and 23% of demand.
For homes priced between $1 million and $1.25 million, the expected time on market decreased from 32 days to 31 days. This range represents 9% of active inventory and 12% of demand.
For homes priced between $1.25 million and $1.5 million, the expected time on market decreased from 39 days to 35 days. This range represents 10% of active inventory and 12% of demand.
For homes priced between $1.5 million and $2 million, the expected time on market decreased from 45 days to 44 days. This range represents 12% of active inventory and 12% of demand.
For homes priced between $2 million and $4 million, the expected time on market over the past two weeks decreased from 80 days to 63 days. For homes priced between $4 million and $6 million, the expected time on market increased from 133 days to 136 days. For homes priced over $6 million, the expected time on market decreased from 337 days to 240 days.
· Luxury homes, or those priced over $2 million, account for 35% of inventory and 16% of demand.
Distressed homes, including short sales and foreclosures, account for just 0.3% of all listings and 0.3% of demand. There are only 3 foreclosures and 2 short sales currently for sale in Orange County, for a total of 5 distressed homes on the market, 2 down from 2 weeks ago. Last year, there were 8 distressed homes on the market, just like today.
· There were 1,182 residential resale transactions in January, up 4% compared to 1,137 in January 2023. December was down 10% compared to December 2023. · Orange County's overall sales price to list price ratio was 98.5%. Foreclosures made up 0.1% of all transactions and short sales were 0.1%, meaning 99.8% of all transactions were with good old fashioned equity sellers.
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